Baseball cards are considered to be a normal good. This means that, as incomes rise, consumers are willing and able to purchase greater quantities (more) of baseball cards. How would an increase in incomes be modeled in a graph of the supply and demand curves for baseball cards?(1 point)

Question

Responses

The supply curve would shift to the left.
The supply curve would shift to the left.

The supply curve would shift to the right.
The supply curve would shift to the right.

The equilibrium point would move upward along the supply curve because of an increase in demand.
The equilibrium point would move upward along the supply curve because of an increase in demand.

The equilibrium point would move downward along the supply curve because of a drop in demand.

Answer 1

In this scenario, baseball cards are considered a normal good, which means that as incomes increase, the demand for baseball cards will rise. This increase in demand can be represented with a shift of the demand curve to the right in a supply and demand graph.

Therefore, the correct response would not be directly included in your options, but based on the implications of increased income:

• The supply curve would shift to the left. (Incorrect)
• The supply curve would shift to the right. (Incorrect)
• The equilibrium point would move upward along the supply curve because of an increase in demand. (Incorrect) in terms of describing what happens to the curves; this statement is somewhat misleading as it refers to movement along the curve rather than a shift.
• The equilibrium point would move downward along the supply curve because of a drop in demand. (Incorrect)

The best understanding is that with an increase in income, the demand curve for baseball cards shifts to the right, leading to a higher equilibrium price and quantity. Since none of the options accurately depict this situation, it might be necessary to point out that none of the given options are correct based on typical economic models.